The European Union's maritime transport
policy for 2018

For Europe, shipping has contributed largely to
economic growth and prosperity all along its history. At the start of the
21st century, the maritime transport
system is at the forefront of the globalisation process and has provided the
vehicle for an unprecedented growth of world trade and industrial and commercial
interconnections in the world economy.

In terms of volume, 90% of the freight exchanges of Europe with the rest of
the world are seaborne. Maritime transport services, including off-shore
activities, are essential for helping European companies compete globally. Among
EU Member States, short sea shipping is a key element in reducing congestion,
ensuring territorial cohesion and promoting the sustainable development of the
European continent. With more than 400 million sea passengers a year travelling
through European ports, passenger ships and ferry services have a direct impact
on the quality of life of citizens in islands and peripheral regions.

Shipping represents one of Europe's largest export industries, providing deep
sea transport services between Europe and the rest of the world, as well as in
cross trades between third countries. European shipping is present in all
segments of the sector in all regions of the planet. Transport of freight and
passengers at sea generated € 24.7 billion in 2006 as a net contribution
to the EU balance of payments. In terms of added value, traditional maritime
sectors represent a share of 1.09% in the total GDP of the EU-27 and Norway.
Maritime transport activities' related employment in Europe amounts to
1.5 million people. Some 70% of shipping related jobs are onshore –
in shipbuilding, naval architecture, science, engineering, electronics,
cargo-handling and
logistics.[1]

Challenges and opportunities for maritime transport in the next 10
years

The continuous success of European shipping in world markets cannot be taken
for granted. A number of major challenges have been identified by experts
consulted by the Commission. The current crisis of the international
financial system, its impact on the real economy and the sluggish recovery
prospects in different parts of the world have affected seaborne trade
and thus the different branches of the shipping industry.

Moreover, recent developments in the energy markets, including the cut of
pipelines for gas supplies, have underlined the strategic importance of LNG
tanker-ships for ensuring a stable and long-term solution to guarantee reliable
energy supplies to the EU. In a wider context, those developments remind the
importance of the fleet, in all its branches of activity, for the well being of
the European citizens and of the European economy as a whole.

Operators involved in the provision of maritime transport services and the
European maritime transport as such will face significant challenges in the
years to come. They will have to cope with the fluctuations in sea-borne trade,
the negative impact of the financial crisis and other external factors, such as
the risk of overcapacity in certain market segments, the rise of protectionist
measures affecting world trade, environmental concerns related to climate
change, volatility in energy and other commodities markets and loss of European
maritime know-how because of the scarcity of skilled human resources.

Moreover, competitive advantages given by third countries to shipping
businesses entail a real risk of de-localisation of head offices and maritime
industries outside Europe. Often the position of European operators is
undermined by unfair competition, which results from lax enforcement of safety,
security, environmental and social standards in certain parts of the world.
Achieving effective governance of maritime affairs and an international fair
level playing field for maritime transport remains a crucial challenge to the
global community.

Strategic options at European level

The EU's sustainable transport policy aims at addressing the economic, social
and environmental needs of our society. An efficient maritime transportation
system is essential for Europe’s prosperity, having significant impacts on
economic growth, social development and the environment.

In autumn 2007, after having consulted the main stakeholders of the sector,
the Commission started a strategic review of the EU's integrated maritime
policy, examining also the challenges European and international maritime
transport will face in the next ten years.

This work has included the conduct of a prospective study analysing trends
and signals of change in the maritime sector (the so-called 'shipping scenarios'
for 2018). It has also involved consultation with experts from maritime
administrations in the Member States and Norway, as well as advice from a group
of senior industry leaders representing different interests within the maritime
transport industries.

The prospective study "Benchmarking strategic options for European
shipping and for the European maritime transport system in the horizon
2008-2018" can be downloaded from the following address:

The three basic shipping scenarios for the year 2018 ("Asian Phoenix", "Break
Point" and "Global Fissures") are briefly described in annex.

The recommendations of the group of senior shipping professionals (see
IP/08/760
of 19/05/2008) present an industry opinion on the more urgent issues to be
addressed and on the way the EU could intervene. The recommendations can be
downloaded from:

By 2018, European shipping transport services should be at least as
efficient, reliable and sustainable as today. There should be sufficient
transport capacity available and the port and port hinterland capacities should
be able to cope with increased cargo volumes.

By 2018, the shipping industry should be at least as competitive as today,
and have an equally strong or better position on the global markets.

Strategic recommendations

Several important conclusions come from this strategic review exercise. First
of all, the recovery of the world economy from the current financial crisis
would lead to a growth in international trade and will require a maritime
transport system able to deliver advanced logistic solutions. Moreover, in a
recession period, short sea shipping is a perfect vehicle for stimulating
intra-EU trade exchanges and thus supporting recovery of growth in the EU and
its neighbouring countries.

Overall, the next ten years may offer a unique opportunity to reinforce the
competitiveness of European shipping, and to strengthen its contribution to the
objectives of a sustainable European transport policy.

The strategic recommendations concern seven main issues:

Competitive European shipping: The priority is to achieve and maintain an
attractive framework for quality shipping and quality operators in Europe
including financial measures. This will help maritime transport achieve
sustainable development goals. Such a framework would also help the sector adapt
to adverse financial conditions and to the slow-down in growth of the world's
sea-borne trades.

Human Factor: There is a genuine European interest in making maritime
professions more attractive to young people and thus improving employment of
seafarers. Positive measures may include facilitating life-long career prospects
in the maritime clusters; enhancing the image of shipping; supporting the work
of international organisation (IMO and ILO) on fair treatment of seafarers; and
implementing simplification measures which aim at reducing the administrative
burden on masters and senior ship officers.

Greener Maritime Transport: The EU should encourage all actors to promote
green solutions in maritime transport. The Commission, the Member States and the
European maritime industry should be working together towards the long-term
objective of "zero-waste, zero-emissions". The measures announced in the
Greening Transport Package should be fully implemented.

A safe and secure system: We should give priority to the enforcement of
existing Community and international rules and the speedy implementation of
measures introduced with the 3rd maritime safety package. The work already
started should be completed by establishing a comprehensive framework for
security measures in terms of prevention, reaction capacity and resilience.

International Scene: The global challenges faced by the shipping and
maritime industries demand convincing answers from the international community.
The Commission and the Member States may be a real driving force for change
towards a comprehensive international regulatory framework for shipping, adapted
to the challenges of the 21st century.

Short Sea Shipping and Ports: Further economic integration of the EEA Member
States and of the neighbouring countries will have positive impact on maritime
transport connections within the EU. It should be noted that sea-trade normally
grows even in periods of business contraction. In the 2018 horizon, the European
economy should recover from the current stagnation. Positive measures in support
of short sea shipping should also help intensify sea-exchanges in all the
European maritime façades. These measures will include the creation of a
European Maritime Transport Space without Barriers the full deployment of the
Motorways of the Seas but also the implementation of measures for port
investment and performance. In all cases, the principles of open markets, fair
competition and greening transport should be respected.

Innovation and technological development: The competitiveness of the
European maritime industries and their capacity to meet the environmental,
energy, safety and human challenges is positively influenced by increased
efforts in research and innovation. There is wide scope for improving energy
efficiency in ships, reducing environmental impact, minimising the risks of
accidents or providing better quality of life at sea. In the years to come,
innovation and technological research and development in shipping should be
further promoted. A framework of reference should be introduced for the
deployment of "e-Maritime" services at European and global
levels.

The Communication on the EU Maritime Transport Strategy 2018
is addressed to the European Parliament and the Council. In the light of their
opinion and conclusions, the Commission will continue to look for concrete ways
to implement the recommendations. This work will involve close cooperation with
all interested parties

Annex

The significance of the European Maritime Transport Space without
barriers

In maritime transport, voyages from one port of an EU Member State to another
are always considered international even when the cargo transported consist of
goods in free circulation ("Community goods").

A vessel is considered to leave the customs territory when it leaves a
Community port for another Member State port with a consequence that maritime
transport of goods is subject to complex administrative procedures that decrease
its attractiveness for the transport of Internal Market goods.

The European maritime transport space without barriers is a concept which
extends the Internal Market wider to intra-EU maritime transport through the
elimination or the simplification of administrative procedures in intra-EU
maritime transport, in order to enhance its attractiveness and reinforce its
efficiency and competitiveness, and contribute to a higher protection of
environment.

To implement this concept, the Commission identified a series of measures,
which are described in the parallel Communication "establishing an EU Maritime
Transport Space without barriers". Those measures are:

 Elimination of systematic controls and documentary requests by
Customs for goods carried by sea between EU ports in line with inland transport.
The measure will require a modification of the implementing provision of the
Community customs code early in 2009 and should be in force by 2010.

Concerning the legislation on veterinary and phytosanitary products,
guidelines should be adopted in 2009 in order to speed up the documentary checks
in Directives 89/662/EEC , 90/425/EEC and 2000/29/EC .

Rationalisation of vessel-related and goods-related reporting and forms
required by Directives 2002/6/EC (formalities for vessels at the
arrival/departure of ports), 2000/59/EC (waste and residue reception),
2002/59/EC (vessel monitoring) and Regulation (EC) N° 725/2004 (maritime
security) through a proposal for a directive of the European Parliament and the
Council attached to the Communication.

Further enabling measures would also need to be implemented, namely:

Examining the possibility to grant facilitation to ships sailing between
Community ports but making a call in a port located in a third country or a free
zone;

Enhancing the electronic transmission of administrative data through the
deployment of e-maritime systems;

Setting-up an administrative single window;

Evaluating the feasibility to recognise the equivalence of maritime rules
and rules for road/rail for the carriage of dangerous goods in view to
facilitate intermodal transport.

In addition, recommendations should
be given that Member States implement further enabling measures, each time the
local conditions permit to do it in an efficient manner, namely:

To coordinate the inspections carried out in the ports by the various
administrative services;

To extend the scope of Pilot Exemption Certificates;

To facilitate administrative communication;

To create areas in ports dedicated to Short Sea Shipping where that can
facilitate the operations for this mode.

The administrative
simplification is expected to reduce costs for undertakings and to induce a
significant modal shift from land to short sea shipping which will bring
environment benefits and reduce energy consumption and greenhouse gases
emissions. The benefits for undertakings was estimated at 2.4 billion €,
which is probably an underestimated figure as it does not take into account the
effect of modal shift.